VRL Logistics shares gained over 10 per cent on Thursday after it informed bourses that it has withdrawn the plans to enter into the civil aviation space. Promoters of the company in May had said they were planning to start a regional airline.
The share price of VRL Logistics closed 10.68 per cent up at Rs 348.20. The scrip opened the day at Rs 377.50 and has touched a high and low of Rs 377.50 and Rs 344.10, respectively, in trade. Benchmark BSE Sensex settled 205.37 points down at 27,710.52. The share price of the company jumped as much as 20 per cent intraday.
In a BSE filing, the company said, “There have been several developments including the announcement of the new aviation policy by the Centre. The regional connectivity related aspects listed in the said policy do not augur well with our planned business model envisaged for the proposed activity. As such, We have decided to drop the plans for an entry into the civil aviation space.”
For the quarter ended March 31, 2016, VRL Logistics reported net profit of Rs 13.21 crore, down 31.78 per cent, against Rs 19.37 crore in the corresponding quarter a year ago.